IB Maths AA SL Topic 4 โ€” Probability Distributions Paper 1 & 2 ~9 min read

Expected Values

If you played a game forever, what would your average outcome be? That’s the expected value โ€” the long-run mean of a random variable. It’s the maths casinos use to set odds, and the maths you use to decide if a game is fair.

๐Ÿ“˜ What you need to know

What does E(X) mean?

E(X) is the expected value โ€” also called the mean โ€” of a discrete random variable. Think of it as the average outcome you’d get if you repeated the experiment over and over.

The formula is in the formula booklet:

Expected value of a discrete random variable
E(X) = โˆ‘ x ยท P(X = x)

In plain English: multiply each value by its probability, then add them all up.

๐Ÿค” Why does this work as an “average”?

If a value has a high probability, it’ll happen often โ€” so it pulls the average toward itself. Multiplying by the probability gives that value its proper “weight”. The result is a weighted average โ€” exactly what a long-run mean should be.

The expected value doesn’t have to be a real outcome!

This trips students up: the expected value can be impossible in any single trial.

E(X) is what you’d average to if you ran the experiment millions of times. In any individual trial, you get a real value (like 2 heads). Across many trials, the average creeps closer and closer to E(X).

How to calculate E(X)

The 3-step method

  1. Get the probability distribution as a table. Build one if needed.
  2. Multiply each value of x by its probability P(X = x).
  3. Add up all the products. The result is E(X).

A quick example

Say X has the distribution:

x1234
P(X = x)0.10.30.40.2

Then E(X) = 1ร—0.1 + 2ร—0.3 + 3ร—0.4 + 4ร—0.2 = 0.1 + 0.6 + 1.2 + 0.8 = 2.7.

๐Ÿ“

Lay out your work as x ร— P first

Write out each multiplication clearly. It avoids skipping a term and makes it easy to spot errors. Examiners also award method marks for showing the products even if you arithmetic-fail at the end.

Spotting symmetric distributions

If a distribution is symmetric (the values and their probabilities are mirror images), the expected value is just the centre of symmetry. No need to add anything!

Example: if X takes values 1, 5, 9 with probabilities 0.3, 0.4, 0.3 โ€” the values and the probabilities mirror around 5, so E(X) = 5.

๐Ÿง 

Memory trick: “Symmetric? Find the middle”

If both the values AND the probabilities are symmetric, the mean is just the centre. This saves you from doing the full calculation when distributions look “balanced” around a single point.

Always double-check that BOTH the values and probabilities are symmetric. If the values are 1, 5, 9 but the probabilities are 0.5, 0.3, 0.2, the distribution isn’t symmetric โ€” and you’d need the full formula.

Is a game fair?

One of the most common exam patterns: someone pays to play a game and wins a prize based on chance. Is it fair?

Let X be the player’s net gain or loss (prize โˆ’ cost). Then:

Expected gain

E(X) > 0
Player wins on average. Game favours the player.

Fair game

E(X) = 0
Player breaks even on average.

Expected loss

E(X) < 0
Player loses on average. Game favours the house.

Two ways to set up a fairness question

You can either:

Both work, but Method A is usually quicker โ€” calculate E(prize), compare to the cost.

๐Ÿค” Why isn’t a fair game profitable for the seller?

If E(gain) = 0 for the player, the house breaks even too โ€” they don’t make money. That’s why real-world casinos and lotteries always set odds so E(gain) is negative for the player. The “house edge” is just the size of that negative expected value.

Expected number of occurrences

If you do an experiment n times and the probability of a particular outcome is p, the expected number of times it happens is just np.

Expected number of occurrences
Expected count = n ร— p

Example: roll a fair dice 60 times. Expected number of 6’s = 60 ร— 16 = 10.

๐Ÿ“

Two different “expected” formulas โ€” don’t confuse them

E(X) = โˆ‘ xยทP(X = x) โ†’ for the average value of a random variable.
Expected count = np โ†’ for the average number of times an event happens. Choose the right one based on what’s being asked.

Worked examples

WE 1

Calculate E(W) and decide if a game is fair

Daphne pays $15 to play a game where she wins a prize of $1, $5, $10 or $100. The random variable W represents the prize, with the distribution:

w1510100
P(W = w)0.350.50.050.1

(a) Calculate the expected value of Daphne’s prize.   (b) Determine whether the game is fair.

Use formula E(W) = โˆ‘ w ยท P(W = w). Then compare expected prize to the $15 cost.part (a) โ€” expected prize Multiply each prize by its probability: E(W) = 1 ร— 0.35 + 5 ร— 0.5 + 10 ร— 0.05 + 100 ร— 0.1 = 0.35 + 2.5 + 0.5 + 10 = 13.35 E(W) = $13.35part (b) โ€” is the game fair? A game is fair when expected gain = 0 (prize = cost). Expected gain: prize โˆ’ cost = 13.35 โˆ’ 15 = โˆ’1.65 Expected loss = $1.65 per play. NOT fair โ€” Daphne expects to lose $1.65 always state the expected gain/loss number โ€” it earns marks!
WE 2

Expected value of a fair dice roll

A fair 6-sided dice is rolled. Let X be the number shown. Find E(X).

Each face has probability 1/6 โ€” uniform distribution. Apply formula: E(X) = 1 ร— 16 + 2 ร— 16 + 3 ร— 16 + 4 ร— 16 + 5 ร— 16 + 6 ร— 16 = 1+2+3+4+5+66 = 216 = 3.5 E(X) = 3.5 3.5 isn’t a value on the dice โ€” but it’s the long-run average roll!
WE 3

Use E(X) to find an unknown

The discrete random variable X has the distribution:

x0123
P(X = x)0.2p0.30.1

Given that E(X) = 1.5, find p.

Two equations: โˆ‘P = 1 AND E(X) = 1.5. Use either (or both) to find p. Method 1 โ€” use โˆ‘P = 1: 0.2 + p + 0.3 + 0.1 = 1 p = 1 โˆ’ 0.6 = 0.4 Check with E(X): 0(0.2) + 1(0.4) + 2(0.3) + 3(0.1) = 0 + 0.4 + 0.6 + 0.3 = 1.3 But E(X) should be 1.5 โ€” contradiction! So the table must have ANOTHER unknown too. Re-check assumptions. Use the E(X) equation directly: 0(0.2) + 1ยทp + 2(0.3) + 3(0.1) = 1.5 p + 0.6 + 0.3 = 1.5 p = 0.6 p = 0.6 (using the E(X) equation) when given E(X), use it directly! (the table likely has a 2nd unknown elsewhere)
WE 4

Expected number of occurrences

A spinner has 5 equal sectors: 2 red, 2 blue, 1 green. The spinner is spun 100 times.

(a) Find the expected number of greens.   (b) Find the expected number of reds.

Expected occurrences = n ร— p.part (a) โ€” green P(green): 15 = 0.2 Expected = 100 ร— 0.2 = 20 Expected greens = 20part (b) โ€” red P(red): 25 = 0.4 Expected = 100 ร— 0.4 = 40 Expected reds = 40 “expected” is a long-run average โ€” actual count may vary!
WE 5

Find the cost that makes a game fair

A game has prizes $2, $5, $20 with probabilities 0.5, 0.4, 0.1. What entry fee makes the game fair?

A fair game means E(prize) = entry fee. Calculate E(prize) first. Apply formula: E(prize) = 2 ร— 0.5 + 5 ร— 0.4 + 20 ร— 0.1 = 1 + 2 + 2 = 5 For fairness, fee = E(prize): Fair entry fee = $5 if charge = expected prize, the game is fair (E(gain) = 0)

๐Ÿ’ก Top tips

โš  Common mistakes

๐ŸŽ‰ You’ve finished the entire Probability Distributions subtopic! You can now describe a discrete random variable, compute probabilities for any inequality, and find the long-run average outcome. The next chunk of Topic 4 looks at two specific discrete distributions โ€” the Binomial and the Normal distribution โ€” both of which use the same fundamentals you’ve just learned.

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